Analysis of Regional Economic Disparity in Henan Province by Theil Index

This paper using the relative and absolute index,and the decomposable Theil index evaluates and analyzes the regional economic disparity in Henan.The results show that the regional economic disparity in this province is increasing at higher speed year after year,and is composed mainly of the disparity between each region.The wealth brought about by the economic growth will affect the development of economy if the wealth is not distributed evenly among each region Based on the conclusion,it is suggested that measures be taken to lower the rate of disparity increase of economy and to reduce mainly the regional economic disparity amony gnoups.